US car manufacturing giants are under pressure on Monday and shares are reversing as they club together to call on President Trump not to impose tariffs on their products.
Car makers have been notable casualties in the trade spat as they have been caught in the crossfire.
Metals needed.
That is mainly because they need metal to to build their cars, including many parts from overseas.
Trump's threat to pull out of the North American Free Trade Agreement (NAFTA) could also hurt the supply chain within the industry.
Last week, General Motors (NYSE:GM) said that the tariffs, if approved, could drive up the process of individual vehicles and costs would need to be borne either by consumers or the company, the latter meaning job cuts.
General Motors shares are today down 0.96% at US$39.02, while fellow automotive titan Ford (NYSE:F.) are also lower, off 1.09% to stand at US$10.96.
Trump ordered investigation
In May, Trump ordered an investigation into whether imported cars and automotive components could pose enough of a national security risk to warrant tariffs of as much as 25%.
The 45th US president has threatened to impose tariffs on European cars if the EU does not lift tariffs it imposed on US goods in retaliation to tariffs Mr Trump imposed on European steel and aluminium.
South Korean Hyundai has said tax duties would be “devastating” to its business and jeopardize plans to expand manufacturing in the US.
Meanwhile, Germany-based BMW has said its investment of almost US$9bn at the South Carolina plant in the US supported more than 120,000 jobs.